The Australian dollar was lower against its U.S. counterpart on Monday

Daily Technical Analysis:

From  trend line analysis, Aussie has closed downtrend channel by closing rate below 1.0420, and now if AUD sustained this 1.0420 (resistance turned support) level, it will be healthy sign for bullish trend.

From above Technical Analysis initial bias remains neutral, where sustaining move below resistance turned support level at 1.0420, may follow bearish move to downward middle band at 1.0387 and then to last week low at 1.0365. While on higher side sustaining move above weekly magnet and SAM5 at 1.0442 may attempt high at 1.0456 and may move to high at  1.0490.

Daily Fundamentals:

The Australian dollar was lower against its U.S. counterpart on Monday, as optimism related to recent announcements of monetary easing by world central banks was overshadowed by ongoing uncertainty over whether Spain will seek external financial aid.

Madrid is to present its draft budget for next year and announce structural reforms on Thursday, while the results of bank stress tests are due on Friday. In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.

Over the weekend, Spain’s economy minister said the country would not rush to seek external financial aid, as pressure mounted on Spain to seek a bailout.

Greece also added to concerns, after its finance ministry dismissed German media reports that the country’s budget shortfall could be as much as EUR20 billion, almost twice as much as previously thought.

Here is schedule for today’s important data:

RBA Financial Stability Review at 6:30am. This RBA report is published twice each year. It examines the conditions and risks of the financial system and may contain clues as to future monetary policy. A report which is more hawkish than expected is bullish for the Aussie.

RBA Assistant Governor Guy Debelle Speaks 1:30pm. The Assistant Governor will be delivering remarks at a university event in Melbourne. Analysts will be looking for hints as to the central bank’s future monetary policy.

US CB Consumer Confidence at 07:00pm. US Consumer Confidence declined August to 60.6 from a revised65.4 in July in light of worries about the weakening job market. The reading was well below predictions forecasting an increase to 65.8. An increase to 63.2 is predicted now.

AUD/USD Yesterday:

AUD/USD opened the day at 1.0444 and after attempting high at 1.0456 the pair dropped to a low at 1.0385. But before closing it rebounded and  closed at 1.0423.


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